All Forum Posts by: Dominick Dahmen

Hello BP Community,

I'm looking at a NN lease. The cap rate is 10% with a new lease signed for 10 years. 10% rental increase in year 6 of initial term with 4, 5 yr options.

My question is, what can I reasonably expect as my Net cap rate after expenses?

Thank you!

Well I did recently see a mobile home park in Jacksonville, NC for $250k. I was looking there because my brother is also active duty at Lejeune. The numbers weren't the greatest on it, but it is possible to get a park out there.

@Brad Mooney

Why do you think that it would be hard to sell in your area?

Hello Everyone,

I found a park in a bigger city and I assume that demand and everything is good for the time being because there is a bigger problem currently. The seller has stated that the lots are grandfathered for 51 lots, but currently the city is now only allowing 25 lots and had basically forced out tenants with warranted trailer inspections. Currently it is "fully occupied" per the city's lot allowance. Seller had indicated that the city said they would only be willing to go up to 35 lots, are demanding park upgrades, and demand newer homes be brought in. 

This sounds like a huge opportunity. However, the seller says that he has already been in a legal battle with the city and he is selling to "cut his losses" and let another investor come in and deal with it. 

My question  is, shouldn't there be a sure way to win this as there are plenty of wrongdoings by the city?

Thank you!

Hey everybody,

Are there any MHP investors having success in Georgia? I hear that GA, LA, MS, and AL are harder places to invest in. is this true?

Thank you!

@Eben Rohling Well actually upon closer inspection, the numbers would work, but you have to be careful about the park owned homes (POHs). What is the actual lot rent underlying that? You only want to buy the trailers for no more than what they would sell for in that market. Don't make the mistake of capitalizing their income. I'd need some more details on the numbers personally. Like what exactly the owner spent on maintenance, etc.

At first glance, in my limited knowledge, it looks like someone is not great at running numbers. Either they're lying, hiding something, or just don't know how to run a park.

Hello BP,

I have somewhat of a naiive question. So I really am starting to dig into MHPs. I look on all the websites to find deals, however I don't really have capital to act on them. I don't want to cold call and create deal flow if I can't even fund a deal.

The question is, if I were to find an off market deal. Do I NEED to put it under contract to start telling people about it? If so, would I do some deeper due diligence and the phase 1, or would the potential buyer?

Thank you!

Hey BP Community,

Who is currently investing in the state of Illinois as a MHP investor?

Is it possible to wholesale a Mobile Home Park that is being sold by a broker?